Exercise 8-1 (Algo) Perpetual inventory system; journal entries [LO8-1] John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit 1a Inventory 500 X Accounts payable 500 1b Inventory Cash 02 Accounts payable Inventory 4 За Cash Sales revenue
Exercise 8-1 (Algo) Perpetual inventory system; journal entries [LO8-1] John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit 1a Inventory 500 X Accounts payable 500 1b Inventory Cash 02 Accounts payable Inventory 4 За Cash Sales revenue
Chapter1: Financial Statements And Business Decisions
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![Exercise 8-1 (Algo) Perpetual inventory system; journal entries (LO8-1]
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:
1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited
by the supplier.
3. Merchandise costing $3,050 was sold for $5,700 in cash.
Required:
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
X Answer is not complete.
No
Transaction
General Journal
Debit
Credit
1a
Inventory
500 X
Accounts payable
500
1b
Inventory
Cash
02
Accounts payable
Inventory
4
За
Cash
Sales revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2F420e4d04-cc52-402a-aa5c-da7b2a47d4c6%2F7sqdwp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-1 (Algo) Perpetual inventory system; journal entries (LO8-1]
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:
1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited
by the supplier.
3. Merchandise costing $3,050 was sold for $5,700 in cash.
Required:
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
X Answer is not complete.
No
Transaction
General Journal
Debit
Credit
1a
Inventory
500 X
Accounts payable
500
1b
Inventory
Cash
02
Accounts payable
Inventory
4
За
Cash
Sales revenue
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